Plain-English definitions

Annual Fee

Yearly charge for holding the card. Many cards waive this if you spend above a threshold (fee waiver spend).

Annual Percentage Rate (APR)

The yearly interest rate charged if you carry a balance. Indian cards typically range from 23% to 53%. Always pay in full to avoid this.

Base Reward Rate

The standard percentage of spend returned as rewards on non-category purchases. E.g. 1% means Rs.1 back per Rs.100 spent.

CIBIL Score

India's most widely used credit score, ranging from 300-900. Above 750 is considered excellent. Maintained by TransUnion CIBIL.

Credit Utilisation

The percentage of your total credit limit currently in use. Keeping it below 30% positively impacts your credit score.

Devaluation

When a bank reduces card benefits — cutting reward rates, adding caps, gating lounge access, or increasing fees — without changing the card name.

EDGE Miles

Axis Bank's reward currency. Can be transferred to airline miles (KrisFlyer) or hotel points at competitive ratios.

Fee Waiver

Many cards waive the annual fee if you spend above a certain amount in a year. E.g. HDFC Regalia Gold waives Rs.2,500 fee on Rs.4L annual spend.

Flying Returns

Air India's frequent flyer program. Earnable via Air India SBI card and some other co-branded cards.

Forex Markup

Additional charge on international transactions, typically 1.5% to 3.5% of the transaction amount. Zero forex cards waive this entirely.

Fuel Surcharge Waiver

Most credit cards charge 1% surcharge on fuel purchases. Cards with this benefit waive it, saving Rs.10-50 per fill-up.

Hard Inquiry

A credit check triggered by a card application. Reduces your score by 5-10 points. Too many in a short period signals risk.

Interchange Fee

The fee banks charge merchants for accepting card payments. This is how banks fund reward programs without charging users.

Interest-Free Period

Days between purchase and payment due date where no interest is charged. Typically 20-50 days depending on when in the billing cycle you spend.

Joining Fee

One-time fee paid when you first get the card. Different from annual fee (which recurs). Often offset by welcome benefits.

KrisFlyer

Singapore Airlines' frequent flyer program. One of the best partners for HDFC and Axis card transfers. Known for Business Class sweet spots.

Lounge Access

Complimentary access to airport lounges. Domestic (Dreamfolks/VISA) and international (Priority Pass) are different networks with different coverage.

Marriott Bonvoy

Marriott's hotel loyalty program. Points transfer partner for HDFC, Axis, and Amex cards. Cat 1-4 hotels in India offer best value redemptions.

Membership Rewards

American Express's reward currency. Transfers to Marriott Bonvoy (1:1), British Airways Avios (1:1), and other partners.

Milestone Bonus

Extra rewards earned when cumulative spend hits a threshold. E.g. Amex gives 7,700 bonus MR points on Rs.1.9L annual spend.

MITC

Most Important Terms and Conditions. The official document banks publish with all card terms. Changes here = devaluations.

NeuCoins

Tata Neu app's reward currency, worth Rs.1 each within the Tata ecosystem (BigBasket, Croma, 1mg, Westside, Air Asia).

Priority Pass

The world's largest independent airport lounge access program. Cards with Priority Pass give access to 1,300+ lounges globally.

Redemption Haircut

The value lost when redeeming points for low-value options. E.g. HDFC points worth Rs.1.80 via KrisFlyer are worth only Rs.0.30 as cashback.

Reward Currency

The points/miles/cashback type earned by a card. Different currencies have different transfer partners and redemption values.

Reward Rate

The effective percentage return on spend as rewards. Always verify the redemption value — a "5X points" card may only give 0.5% actual value.

Revolving Credit

Carrying a balance from one month to the next. Triggers interest charges at the APR. Should be avoided given India's high APRs (42-53%).

Soft Inquiry

A credit check that does NOT affect your score. Checking your own score is always a soft inquiry.

Welcome Benefit

One-time reward given on joining a card, often as bonus points, vouchers, or fee reversal. Best cards give benefits equal to or exceeding the joining fee.